USD/JPY Current Price: 1.2691

The Japanese yen was among the worst performers on Wednesday. An improvement in risk sentiment and a decline in US bonds weakened the currency significantly. Still, the slide was limited ahead of a key event for risk sentiment: the G20 meeting. Rate cuts from the Federal Reserve are expected but not as aggressively as yesterday. Comments from Bullard and Powell tampered expectations and triggered a rebound in US yields. The 10-year rose from below 2% to 2.05% supporting the rally in USD/JPY. The pair had the best performance in two months and closed far from the 107.20 area for the first time in five days. During the Asian session, retail sales data will be released in Japan, while in the US, market participants are likely to focus on the Q1 GDP revision.

Technically, USD/JPY run into an active resistance area at 107.80/90 that capped the upside. Ahead of the Asian session, some consolidation and a pullback could take place considering that the gains seen on Wednesday were the biggest in months. The 107.50 zone is the immediate support, and far below comes 107.05. Below the last one, the bearish pressure will likely intensify. The 4-hour chart shows the pair with a clear bullish bias in line with technical indicators. A breakout above 107.80 could boost the greenback back above 108.00, targeting 108.30.

Support levels: 107.00 106.75 106.50

Resistance levels: 107.90 108.40 108.70

View Live Chart for the USD/JPY

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Analysis feed

Latest Forex Analysis

Editors’ Picks

USD/JPY extends the bounce above 108.50 on rising trade deal hopes

The USD/JPY pair extends its bounce from eight-day lows of 108.25 in Friday's Asian trading, with the bulls regaining control above 108.50 after White House Economic Adviser Kudlow's comments bolstered US-China trade deal hopes. 

USD/JPY News

AUD/USD looks to regain 0.6800, trade optimism underpins

With the latest trade positive comments from White House Adviser Kudlow, AUD/USD seems to have picked up a delayed bid, now testing the 0.68 handle. The spot extends its recovery from monthly lows of 0.6769. 

AUD/USD News

USD/JPY extends the bounce above 108.50 on rising trade deal hopes

The USD/JPY pair extends its bounce from eight-day lows of 108.25 in Friday's Asian trading, with the bulls regaining control above 108.50 after White House Economic Adviser Kudlow's comments bolstered US-China trade deal hopes. 

USD/JPY News

US Dollar Index: DXY suck at monthly highs near 98.40 level

DXY (US Dollar Index) is trading in a bull trend above the main daily simple moving averages (DMAs). This Thursday the Greenback is once again challenging the 98.40 level while trading just above the 50 DMA.

US Dollar Index News

WTI testing offers near $ 57 amid trade optimism, ahead of US data

WTI is looking to extend the overnight bounce above the 57 handle, as the bulls find some solace from the renewed US-China trade optimism after both trade teams agreed to meet over trade talks later on Friday. 

Oil News

Forex Majors

Cryptocurrencies

Signatures